CHAPTER VII OFFENCES AND PENALTIESCentral

Section 74 of The Insolvency and Bankruptcy Code, 2016. in hindi

(1)Where the corporate debtor or any of its officer violates the provisions of section 14, any such officer who knowingly or wilfully committed or authorised or permitted such contravention shall be punishable with imprisonment for a term which shall not be less than three years, but may extend to five years or with fine which shall not be less than one lakh rupees, but may extend to three lakh rupees, or with both.
(2)Where any creditor violates the provisions of section 14, any person who knowingly and wilfully authorised or permitted such contravention by a creditor shall be punishable with imprisonment for a term which shall not be less than one year, but may extend to five years, or with fine which shall not be less than one lakh rupees, but may extend to one crore rupees, or with both.
(3)Where the corporate debtor, any of its officers or creditors or any person on whom the approved resolution plan is binding under section 31, knowingly and wilfully contravenes any of the terms of such resolution plan or abets such contravention, such corporate debtor, officer, creditor or person shall be punishable with imprisonment of not less than one year, but may extend to five years, or with fine which shall not be less than one lakh rupees, but may extend to one crore rupees, or with both.

Summary

Section 74, which previously provided punishments for violating a moratorium or an approved resolution plan, was completely omitted from the insolvency laws.

Practical examples

1An officer of a bankrupt textile company violated a moratorium in 2025. He was prosecuted under Section 74, and because his trial was already pending in court before May 26, 2026, the trial continues despite Section 74 being omitted.

2In 2024, a creditor was fined under Section 74 for ignoring a moratorium. Since the penalty was decided before the 2026 amendment came into force, the punishment remains valid and the fine must still be paid.

FAQ

1. What did Section 74 of the Insolvency and Bankruptcy Code, 2016 cover before it was deleted?

Prior to its deletion, Section 74 of the Insolvency and Bankruptcy Code, 2016 provided punishment for officers or creditors who contravened a moratorium or an approved resolution plan.

Test yourself

Q1.Under the Insolvency and Bankruptcy Code, 2016, which amending act officially omitted Section 74?

Q2.Under the Insolvency and Bankruptcy Code, 2016, from what date did the omission of Section 74 become effective?

Q3.Under the Insolvency and Bankruptcy Code, 2016, what happens to a prosecution under Section 74 that was pending in court before its omission in 2026?

Q4.Under the Insolvency and Bankruptcy Code, 2016, how are past punishments imposed under Section 74 affected by the 2026 omission of that provision?

73PreviousSection 73 Punishment for false representations to creditors.75NextSection 75 Punishment for false information furnished in application.

←Section 73 Section 75→